29/11/2017 Asia Business Report

payment ahead of a vital

EU summit next month.

Now on BBC News all the latest

business news live from Singapore.

what does it take to keep their

competitive airline up and running?

We will find out from the man who

was credited with turning Qantas

around. And the new chief of

Ericsson has his sights set on Asia

as the tech and telecommunications

industry changes with the times.

Good morning Asia, hello world. It

is a Wednesday. Thank you for

joining us for another exciting

edition of Asia Business Report. We

start off with Australia's flagship

carrier Qantas and the CEO Alan

Joyce. Here's the highest paid

airline chiefs in the airline --

Asia-Pacific region June. He has

turned around the fall tunes of the

airline through painful cost-cutting

and restructure. They are now

investing in new routes, especially

in Asia. We spoke to Mr Joyce in

London about Qantas's ambitions in

China and its eye watering $19

billion pay packet last year.

The

shareholders who own the company are

the ones who decide my pay. And in

every report we have had go to the

AGM we have had 98, 90 9% including

this year, the port for that. The

reason why I get paid that amount is

because of the appreciation of the

Qantas share price, with the shares

were issued three years ago there

were $3 and now they are worth

nearly $6. The shareholders have

seen the company go from

$2000000000-$10000000000. $8 billion

of value has been created and we

have returned an additional $2

billion to the shareholders. It is

their money. They approve what I get

paid and they are happy because I am

completely in line with their

success.

Despite the London to Perth

route, you keep your hub in

Singapore. Is that because you see

China as an opportunity or is the

expansion of the air market in

China, is that a threat?

We are very

excited about the growth not only in

China but in all of the Asia region.

Let me take the Chinese example, we

get 1.2 million visitors to

Australia from China. Out of 120

million worldwide, 1%. We know that

Australia is appearing as the number

one destination of choice. Some

statistics have the Chinese visitors

growing by, in the next 20 years,

800 million worldwide. If we keep

the 1% that is 8 million visitors,

more than every other nation put

together, coming to Australia. They

typically take two or three domestic

trips. Even if we don't get them

internationally, we are likely to

get them, given our huge domestic

operation, that is a huge boon of

two risen coming to Australia.

So

where is your work, Alliance in

China?

Is that a big push? Yes it

is. We have two strong partnerships

with China Eastern and China

Southern. And ten years ago we had

one third of our capacity to Europe,

one third to Asia and one third to

the Americas. Today it is a% to

Europe, 52% to Asia, that is how

much we have rebalanced and pivoted

on the rest to the Americas. We are

focused on Asia. It is grown so much

forest in the last decade and in the

next decade it will help grow any

other international market that we

have.

Despite his pay packet it seems that

investors think he is worth it. In

other business news, making

headlines, Apple says it is working

to fix a serious bug within its

operating system. The floor with an

Hi Ciera makes it possible to gain

entry to the machine without a

password, putting the personal

information of users at risk. It

requires physical access to the

system but it could happen remotely

if the user enables Remote Desktop.

Growth should

accelerate next year according to

the OECD. The forecast shows the

upturn becoming increasingly

synchronised across countries. The

world economy is growing at its

fastest rate since 2010. However,

economists warned that conditions

were a sustainable expansion are not

yet in place. In the shadow of the

latest missile launch by North

Korea, China has decided to loosen

its ban on allowing two groups

arrange trips to South Korea.

Authorities in Beijing had

prohibited such trouble earlier this

year as tensions over the

installation of military hardware

world to the surface. I'm joined now

by my colleague and business

reporter Matthew Morrison. Why is

China making this decision now?

The

timing of this is interesting, but

not too surprising. By that I mean

our industry sources started talking

about this hours before the latest

missile was launched but it is not

surprising because of late October

both China and North Korea had

signalled a warning of Thais. They

had been put -- deadlocked

previously. -- China and South Korea

had signalled a warming of Thais. At

stake, millions and millions of

Chinese tourists. Last year alone 8

million, making up around half of

all tourist arrivals to South Korea.

That makes it the second most

popular destination after Thailand

and ahead of Japan, interestingly.

This amounts to a lot of lost

revenue, about $6.5 billion worth

because the number of tourist to the

first nine months has been cut in

half and it is not just tourism, it

is cars, cosmetics, conglomerates

such as Hyundai. And supermarket

chains, for example. Lotte had to

shut a lot of supermarkets.

Businesses have been affected across

the ball but I am sure the Chinese

wanted a dose of kapok?

It is

popular in China but the tours has

been cancelled and music videos have

not been streamed and that includes

South Korean drama and film as well.

So those kapok stars are now going

to America. Seven acts performed in

the US. In May this year, double

that. 14 kapok act in America. If

you can't go to China, go to the US.

And they do need each other. Moving

on now to technology and patterns.

The EU looks take -- set to change

rules on how patents are paid for.

On one side you have patents users

like apple and Volkswagen in favour

of paying that make is that these.

On the other hand, patterned owners

like Ericsson prefer to charge

royalties based on how much value

their technology adds to a product.

The new rules would tip the scales

in favour of patterned owners and

this comes at a time when chips are

used more and more in interconnected

devices. Here are some background

about Ericsson. They were founded in

1876. Back in 2000 it was a big

layer in mobile phones and the share

price hit an all-time high of $81 a

share. Now it is around $6.5.

Earlier I spoke with a global chief

executive of Ericsson and asked

about the possible rule change in

the EU.

It is a speculation so far.

Speculation in the media, to be

honest. How that will look at in our

response and in view of that will

depend on details. . What I think is

important to remember is that this

is part of the overall

standardisation of technology and

networks. I think that has served

consumers quite well because now we

have a global standard, a consumer

can use the same phone wherever the

consumer travels but it also gives a

global scale for the devices. I

think the current regime has worked

quite well.

But technology companies

such as Google in Silicon Valley say

that they want these and this is the

fairest side of the model.

What do

you say to them? We need to take a

step back again. In standardisation

it depends on contributors of

technologists and you contribute

technology into a standard and then

it is also reasonable that the

contributors get paid so that

technology. So there are two sides

to this argument. Without the

contributions into the standard,

there would not be a standard. So if

people do not get paid for what they

contribute, they will not contribute

in the future. Therefore we would

not have a global standard.

You are

here in Asia, how big competition is

China with its massive technology

and telecommunications industry?

China is a big market for us and a

big markets and whole industry.

About 60% of the world market for

radio is in China. So we have to

remember it is a massive market. Of

course, we have Chinese competitors.

They are formidable. We need to work

hard to beat them every day but we

do that with every competitor. We

work hard, we innovate, we invest in

technology to be on the forefront.

Lets leave you with the virtual

currency Bitcoin and it has soared

to an all-time high, above $10,000

on some smaller exchanges and this

is an all-time high for